Silver Eagle Mines Inc. (SEG) is a TSX listed, Canadian-based mining company focused on exploring and redeveloping an historic silver property in the heart of the Mexican precious metals belt, mined by the Conquistadors in the Mid 1500’s. Silver Eagle owns and/or controls 100% of the 41,498 HA Miguel Auza Property in Zacatecas State, Mexico.

In 2005, Silver Eagle commenced the first ever diamond drilling exploration campaign at the property resulting in a mineral resource estimate in April 2006. Three other zones have also been tested, leading to the discovery of a number of high grade veins in the North Zone, as well as in the newly discovered East and Mill Zones. The onsite Mill at the Miguel Auza Mine began processing of a bulk sample in January 2007, producing saleable concentrates. Mining of the mineralized veins for the bulk sample is ongoing and drilling continues with a new resource estimate expected in the fall of 2007.

Objectives An aggressive diamond drilling program with 2-4 rigs (2 of which are company owned) will continue with the goal of further defining, increasing, and upgrading the current mineral resource estimate. Development at the Miguel Auza Mine will focus on extending and deepening the ramp to access vein material for the processing of a bulk sample through its onsite mill. Regional exploration outside the immediate mine area will provide a first-pass evaluation of other important exploration targets on the Miguel Auza Property.

Silver Eagle remains excited about the future of its Miguel Auza Project. All of the exploration and bulk sampling work to date continues to re-enforce the Company’s belief in the strong potential of this mine. In the meantime, Silver Eagle continues to generate cash flow from the sale of the concentrates produced as a result of the processing of the bulk sample. In addition, the Company is commencing initial exploration work on target areas of interest on the Miguel Auza property, outside the immediate area of the mine.